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a firm maintains a 30% pay out ratio. future projects are expected to generate an annual post tax return on investment of 15% an dpre tax return of 20%. what is the firms expected annual rate of growth?
There is no point in simply typing out a full question and expecting to be provided with a full answer. You must have an answer in the same book in which you found the questions, so ask about whatever you do not understand in the answer and I will explain.
This is simply asking you to use the Gordons growth approximation formula that is given in the exam, and I explain how to use the formula in my free lectures.
yes I understand sir, the doubt is whether we have to use pre tax return or post tax return on investment?
sorry for the incomplete question
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